The Big Deal responds to British Gas profit announcement

28th July 2016

British Gas profit slip not all they are making it out
to be

British Gas have today announced profits of £516 million for
residential customers in the six months to 30 June. This is a fall
of 7% compared to the same period in 2015. But British Gas
announced in February a huge increase in profits of 31% to £574
million.

Hidden away in Centrica's announcement is the fact that half the
fall in profits is "due to a one-off 23 million pension credit in
2015."

"A small drop in British Gas profits needs to be put into
perspective. In February this year their profits rose by an
astonishing 31% and remain over half a billion pounds.

And this slight profit slip is not all British Gas is making it
out to be. Hidden away in today's announcement is the fact that
half of it is a one-off £23 million pension credit.

"The truth is that British Gas makes huge amounts of profit by
charging ordinary families way more than they should be paying. The
best deals on the market are hundreds of pounds cheaper than what
the vast majority of British Gas customers pay.

"British Gas themselves had a deal out earlier this year that
was £300 cheaper than their standard tariff. They need to do the
right thing and cut bills for all their customers immediately."

Notes for editors

Centrica admits profit fall is due to a multi-million pension
credit

Hidden away in today's announcement Centrica states that half of
the fall in profits is due to a pension credit:

"UK Home adjusted operating profit fell 6% to £635 million in
the first half of 2016, which includes energy supply operating
profit of £516 million, down 7%. Around half of the UK Home
reduction is due to a one-off £23 million pension credit in 2015,
with the other half mainly reflecting lower holdings and energy use
per customer, partially offset by efficiency benefits." (Centrica
Interim results for the period ended 30 June 2016,
https://www.centrica.com/sites/default/files/2016_interim_results_announcement_0.pdf)

British Gas cheapest deal £300 less than their standard deal

The cheapest deal British Gas offered this year was £744, this
is £300 cheaper than their standard variable tariff at £1,044. It
was offered through MoneySavingExpert's Big Energy Switch,
available for the first two weeks of February.

About TheBigDeal.com

TheBigDeal.com is a consumer collective focused on reducing
people's energy bills. We bring together tens of thousands of
consumers and use our collective buying power to create exclusive
deals.

Launched in March 2014, we now have over 200,000 members and
continue to grow. 62% of our members have never or hardly ever
switched before - these are the very people who have been let down
by the energy market for too long. Moreover, 60% of our members are
over the age of 55 and 30% over the age of 65. We have saved the
British public over £10 million since we launched.

TheBigDeal.com is a start-up business and charges a commission
to energy companies. We are 100% transparent and publish the exact
amount of our commission. For our latest switch that was £40 for a
dual fuel (both gas and electricity) switch. This compares to as
much as £80 to £100 for the Big Five price comparison websites who
refuse to publish their exact commission.